ERRILLVILLE — A food and beverage tax remains on the town's menu, but it won't be served this year.
Town Councilman Richard Hardaway said House Bill 1267 on Monday was presented to state lawmakers with the intent of giving the Town Council authorization to enact a 1% food and beverage tax on sales at restaurants and bars.
Haradway said he later learned it was referred to the Ways and Means Committee and won't be advancing this session.
"There was a glimmer of hope," Hardaway said.
Although the bill won't gain traction this year, town leaders will continue to pursue it.
“I’m hoping that it’s going to be positive and we will be able to finally get the much needed 1% food and beverage tax,” Hardaway said.
Town Attorney Joseph Svetanoff said funding generated from the tax would be used for economic development projects. In particular, the tax could help bring a convention center to Merrillville.
State lawmakers last year considered similar legislation that would have allowed Merrillville to enact the food and beverage tax, but it failed to advance.
“It’s our hope that at some point we’ll be able to get it,” Hardaway said.
During a recent Town Council meeting, there were some questions about the proposed tax, including who would pay it.
“If you look at the food and beverage tax, the way it’s structured, if you eat in town, you’re going to pay a 1% tax in your bill,” Svetanoff said. “But most of the money generated will be from transient individuals passing through Merrillville that will pay this tax and then those monies will come into the town’s account.”
There are a variety of areas in which the town wants to see growth, and food and beverage tax dollars could assist with those efforts.
That includes using funding to help “finance, construct, improve, equip, operate, maintain and promote a convention center and then other economic development projects,” according to the proposed legislation.
The Century Plaza site near U.S. 30 and Broadway has been discussed as a potential location for a convention center.
The 40 acres of land where the Star Plaza Theatre, the Radisson Hotel and the Twin Towers once sat also is a prime area the town wants to see new growth.
Town officials have said the projects the tax money would support would bring more visitors to the area, which would generate more customers at local restaurants and bars.
© Copyright 2024, nwitimes.com, Munster, IN